Oracle shares drop 5% as bondholders sue Larry Ellison and 16 banks over AI-linked debt issuance

On January 14, 2026, Oracle's stock declined 5% in afternoon trading on the New York Stock Exchange after bondholders filed a proposed class-action lawsuit in New York state court against Larry Ellison, senior executives, and multiple underwriting banks. The investors claim they purchased $18 billion of Oracle bonds issued on September 25, before the company allegedly planned a further $38 billion in borrowing tied to a massive OpenAI data center deal, and argue the extra leverage hurt the value of their securities.